Final answer:
Paying health care premiums by the employer results in increased payroll taxes because it adds to the employer’s contributions, which are a part of payroll taxes.
Step-by-step explanation:
If a province funds their health care systems through health care premiums and the employer pays these premiums, the payroll implication is B) Increased payroll taxes. Employers typically handle payroll taxes by deducting certain amounts from an employee's wages for taxes and paying additional taxes from their own funds. The health care premium, if paid by the employer, falls into the second category and is an additional expense, increasing the total payroll tax burden for the employer.
Deductions from an employee's wages, such as income tax and social security contributions, are handled through withholding taxes. However, expenses like health care premiums paid by the employer are not deducted from employee wages but constitute an employer's contribution to healthcare, which may be subject to payroll taxes depending on the jurisdiction's tax laws.